Regions' debt purchase turns into refinance

BIRMINGHAM, Alabama -- Regions Financial Corp. (NYSE: RF) is set to borrow $750 million through a public offering, effectively refinancing some of its existing debt.

Yesterday the company announced it would make a cash tender offer for up to $350 million in existing debt. Most of what will be retired through that action is due to mature in 2014, and has an interest rate of 7.75 percent.

In contrast, the rate on the new debt will be 2.0 percent, a release says. The notes are set to mature in 2018.